SEBI defers implementation of regulatory amendments for merchant bankers, trustees and custodians

On December 18, the regulator had noted that its Board had given approval for merchant bankers, debenture trustees and custodians to carry out other regulated activities as a separate legal entity.

In its March 24 board meeting, SEBI Chairperson Tuhin Kanta Pandey announced that the board had approved the deferral of the implementation of the amendments to the regulations governing Merchant Bankers, Debenture Trustees and Custodians as approved at its December 2024 Board Meeting.

The regulator will review new proposals from the SEBI board in its upcoming meeting after an internal review to find the best approach. Instead of requiring businesses to be separated as originally planned, it is exploring other options to ensure a level playing field.

Also read: SEBI hikes net worth requirement for merchant bankers; introduces clauses for cancelling licence

On December 18, the regulator noted that its Board had given approval for merchant bankers, debenture trustees and custodians to carry out other regulated activities as a separate legal entity. The regulator noted that this could be done after obtaining registration/ confirmation from the respective regulatory authority within a period of two years from the date of notification of amended regulations.

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